Life Insurance

LIC Jeevan Saral Plan: Everything Needs to Know

lic jeevan saral plan

LIC Jeevan Saral is quite similar to an Endowment Assurance plan where the policy holder has to choose the amount and mode of payment. The maturity of the assured sum depends on the age at entry of the insured and is payable on survival at the end of the policy term. This plan also offers the flexibility of the term and offers a lot of liquidity.

What is LIC Jeevan Saral Plan

Under the Jeevan Saral plan, the premium is fixed by the insured person and he is entitled to receive the sum assured at almost 250 times the monthly premium. If the insured person survives the policy term, then they are entitled to get the maturity sum assured plus any loyalty additions. The maturity sum assured is specified at the beginning of the policy and depends on different ages of entry and the term of the policy.

When the policy holder dies within the policy tenure, the nominee will get the sum assured plus the return of premium (excluding rider premium and first-year premium and loyalty additions).

Features of LIC Jeevan Saral Plan

Unlike other Endowment policy, LIC Jeevan Saral has the following features:

  • The insured has the option of selecting the premium amount. The sum assured is then calculated based on the premium amount.
  • The sum assured is 250 time the monthly premium which is defined by the insured. Maturity benefit is the maturity sum assured and any loyal additions.
  • Partial surrender of the policy is allowed after completion of three years subject to subject to certain terms and conditions.
  • The policy holder will get an additional one-year risk cover after payment of premium for three years.
  • The plan allows the policyholder to choose a flexible term for premium payment.
  • Policy holder will be loyalty additions after paying premiums for ten
  • Even if you opt for the maximum term, you can surrender the policy without any penalty after a period of at least five
  • The insurer can take a loan (including a house loan) against the policy.
  • Accidental death benefit and disability is also available as riders.

Eligibility for LIC Jeevan Saral Plan

The plan has a certain eligibility criterion which include the following:

  • The minimum sum assured is 250 times of the monthly premium
  • Minimum and maximum term the policy is 10 years and 35 years respectively.
  • The basic sum assured is in multiples of Rs 5000
  • Minimum age at entry is 12 years, and the maximum age is 60 years
  • Minimum terms for premium payment is 10 years and the maximum period for premium payment is 35 years
  • The maximum age at maturity is 70 years – there is no minimum age
  • The maximum monthly premium is Rs 10000
  • Premium payments can be paid on a monthly, quarterly, half-yearly and annually.

Also Read: LIC Jeevan Saral Vs LIC New Jeevan Anand – Which One to Buy?

LIC Jeevan Saral Plan Exclusions

If the covered commit suicide within one year of the policy issuance date, then the policy will be annulled and the LIC will not pay whatever to his/her family members.

Required Documents to Buy LIC Jeevan Saral Plan

The insurance seeker needs to fill an application form with exact medical details with address proof and other required KYC documents. Medical tests may be required in some specific cases, that are all depends on the Sum Assured and the age of the person.

Things to Know Before Buying LIC Jeevan Saral Plan

Every person has unique financial goals, and there is no one-size-fits-all solution. Lifestyle and financial conditions differ from person to person. A particular insurance plan may be ideal for one but it may not be good for you and may not meet your needs. One must be very careful while zeroing on any plan that the agent is pressurising you to buy. Before you buy, do some research and find out which one is ideal for you which cover every situation in your life. In addition to your research.

Given below are five things you have to consider before you decide which policy to buy.

How Much Finance Will You Require in the Future

You will have short term as well as long term money in the future. For instance, a newly married couple will have short term will include car, furniture, home appliances, appliances and other needs for their new home. Long term needs may include education, marriage, pension etc. The best way to go about it is to note down all your financial requirements and add them up to get a ballpark figure of the amount you will need. This will help you calculate the sum assured that you will get when the policy matures. Moreover, you can also consult a financial advisor who will be able to work out the best plan for you.

What is Your Budget for Buying a Policy

Your budget or how much can you afford to pay for your insurance policy. More importantly, can you continue to pay the premiums until the end of the term? You will lose money if you cannot pay at a future date which will result in your policy lapsing. If you feel that you can afford it, you can always start with low premiums and increase it later when things look brighter.

Does the Insurance Company Allow “Free Look” Period

This is an important feature that should be included in the insurance policy. This gives you a final look so you can peruse the document and see if what you asked for is what you got. If not you can always give it back within the stipulated time. Also, you are not stuck with something that you are not satisfied with.

Check the Lock-In Period

Lock in period is the time frame that the policy cannot be surrendered or cannot be used as collateral for a loan. Insurers offering life cover with investment options generally have lock-in periods. Make sure that you will not require any money during the lock-in period. If you do withdraw, you will lose a lot of money.

What are the other Benefits Offered in the Policy

Check the policy to see what other benefits are offered other than life cover. What are the riders available and is there a top-up option to raise the sum assured. Inquire about the bonuses payable and if there are any tax savings under the income tax act.

The most important factor is to find the Claim resolution ratio. The higher the ratio, the better.

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About FinanceGAB

Ajeet Sharma is a financial blogger and I am blogging since 2017. Financegab is a personal blog dedicated to personal finance. The main aim of this blog to help people to make well-informed financial decisions.
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